Bonkers Bargain under offer
Investment in a new digital offering is coming good for this company's specialist software offering. The sale of a subsidiary for a nice premium leaves the business in a very strong net cash position to support growth, with the company already a large chunk of this to shareholders via a tender offer. The modest valuation and cash rich position has attracted an acquirer, who has now made an offer, which doesn't look overly attractive to us.
Smooth (AIM:SMV), formerly ULS Technology (LON:ULS), supports residential conveyancers and related legal services through its eConveyancer product, an online comparison service for conveyancing used by over 4,000 mortgage brokers and financial intermediaries, lenders, networks and estate agents. Conveyancing is a legal requirement when buying or selling property and customers use the Smoove platform to compare conveyancing quotes based on price, location and service rating. This is made possible by the quality assured solicitor and licensed conveyancing firms with whom Smoove partners, which include many of the UK’s leading solicitor and licensed conveyancer firms. The lender or mortgage advisor uses eConveyancer to obtain accurate…